Diwali cleaning goes beyond your home: 5 money checks you shouldn't skip

Diwali is all about fresh beginnings, but when was the last time you gave your finances a fresh start? Here are five money checks worth making this festive season.

In Short

• Check and update nominees on all financial accounts this Diwali
• Cancel unused subscriptions and payment mandates to save money
• Close inactive bank accounts after verifying linked payments

Diwali cleaning is not just about dusting shelves, clearing cupboards and getting rid of things you no longer use. It is also a good time to take a closer look at your finances. After all, old bank accounts, forgotten investments and unused subscriptions can quietly pile up over the years.

A little financial housekeeping can help you track your money better, avoid unnecessary expenses and ensure your family does not struggle to find important financial information when they need it. From checking nominees to reviewing loans and insurance policies, here are five things you should look at this Diwali.

WHO GETS YOUR MONEY IF YOU'RE NOT AROUND?

When was the last time you checked the nominees in your bank accounts or insurance policies? If you cannot remember, this Diwali is a good time to do so.

Check nominations across savings accounts, fixed deposits (FDs), mutual funds, demat accounts, insurance policies, Employees' Provident Fund (EPF) and National Pension System (NPS) accounts.

It is particularly important to update these details after major life events such as marriage, childbirth or the death of a nominee. Also, make sure your family knows where important financial documents and account details are kept.

Having updated nominations and properly organised records can make it easier for family members to trace and claim financial assets when required.

STOP PAYING FOR WHAT YOU DON'T USE

Small recurring payments may not seem like much, but they can add up over time. You may be paying for an OTT platform you no longer watch, an app you rarely use or a service you had signed up for months ago.

Check your UPI AutoPay instructions, standing instructions, debit and credit card mandates and recurring subscriptions. Cancel services you no longer use and remove unnecessary payment mandates to avoid unwanted deductions.

At the same time, check the payment details linked to essential bills, insurance premiums and investments. Make sure active mandates are linked to the correct bank account or card so that important payments do not fail.

TIME TO SHUT ACCOUNTS GATHERING DUST

Many people have more than one bank account, often because they changed jobs, moved cities or opened an account for a specific purpose. Over time, some of these accounts may become inactive and get forgotten.

Old accounts may also have outdated KYC details, contact information or nominee details. This can make it difficult to trace the money or access the account when required.

The Reserve Bank of India's UDGAM portal can help individuals search for unclaimed deposits across multiple banks.

Before closing an unused account, check whether it has any pending payments, deposits or investments linked to it. Also, update the bank details wherever necessary.

HUNT FOR YOUR FORGOTTEN MONEY

Money invested years ago can easily slip off your radar, particularly if you have changed banks, shifted homes or lost track of old documents.

This Diwali, look for forgotten fixed deposits, savings account balances, unpaid dividends and shares. You can use the RBI's UDGAM portal to search for unclaimed bank deposits belonging to you or your family members.

For shares and dividends that may have remained unclaimed, check the Investor Education and Protection Fund (IEPF) website. Shares and dividends that remain unclaimed for the prescribed period may be transferred to the IEPF.

Do not forget your mutual fund investments either. Search for old folios, unpaid redemption proceeds and unclaimed dividends through the respective asset management companies (AMCs) or registrar platforms such as CAMS and KFin Technologies.

A review of old investments can help you identify money you may have forgotten about and bring your financial records up to date.

SAVINGS, LOANS: IS YOUR SAFETY NET READY?

An emergency fund is one financial cushion every household should have. It can help you manage unexpected expenses such as a medical emergency, job loss or sudden repair costs without dipping into long-term investments or taking expensive loans.

Experts generally recommend maintaining an emergency fund that covers at least six months of essential expenses. This should include EMIs, groceries, school fees, insurance premiums and utility bills.

For self-employed individuals, those with irregular incomes or households dependent on a single earning member, a larger cushion covering nine to 12 months of expenses may be more appropriate. Review this amount every Diwali as your income, family needs and expenses change.

Alongside your emergency savings, take stock of all outstanding liabilities. Prepare a consolidated list of personal loans, credit card dues and other borrowings, along with their outstanding balances, interest rates, repayment schedules and due dates.

Prioritise high-interest debt, particularly credit card dues, and avoid missing repayment deadlines. Delayed payments can affect your credit profile and make future borrowing more expensive.

Before taking on any additional debt, assess your monthly income, essential expenses and existing EMIs to understand how much you can comfortably afford.

A little financial cleaning can go a long way. This Diwali, while you make space in your home for the new, take some time to organise your money matters too. A few checks today can help you avoid unnecessary expenses, keep your investments in order and give your family greater financial clarity.

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